12 Strategies to Improve Your Credit Score

When it comes to a poor credit rating, there’s no quick fix. It’s kind of like managing weight. It’s so easy to gain weight over a short period of time with poor health habits. Losing the weight is a different story. It takes sometimes 2-3 times longer to lose weight than it took to gain it. Credit scores are similarly difficult to rebuild. There are, however, strategies to help you strengthen your credit score over time.

Ask your credit card company to increase your limit: They may deny you, but if they don’t, it’s one way to improve your credit score over time. The catch is that you can’t max out your card once your limit has been increased. Leave the credit window open and pay down your balance to $0 for the best credit results.

Open numerous accounts: In the short term, this won’t do much to improve your score. Over time, however, it is the amount of credit you aren’t using or can pay down each month that will build your score. Spending on every card you open can lead you down a path of surmounting debt. Be very strategic if you try this method to build your score. Use them intermittently for small purchases to keep your account open, and pay them off immediately. You will also have more cards to track for fraudulent charges. Only open as many accounts as you can reasonably monitor for the best results from this strategy.

Never skip a payment or pay late: Paying your mortgage late or forgetting to pay a credit card bill can cause even good credit scores to plummet if they get listed on your rating. Having a high credit score can mean the difference in thousands of dollars in extra fees and interest over time for large loans and expenditures. If you know you’re going to have difficulty making a payment on time, contact your creditor. You may be able to get the payment date moved temporarily or work out some other arrangement to ensure your credit score does not suffer due to unforeseen circumstances.

Don’t max out your credit card: Having good payment history and owning a credit card are only pieces of the credit score equation. Try not to carry a balance that is over 35% of your credit limit. If you have a high balance on one card and relatively low balances on others, it may make sense to transfer the high balance to several low balance cards to keep the percentage of each card at or under 35%.

Don’t close unused card accounts: Long histories of holding a card positively impacts your credit score. Even if you don’t use a card, you should hold onto and monitor the account. It can be beneficial even if the account is completely inactive.

Use your home equity line to pay down debt: Occasionally, it makes sense to transfer your credit card debt to a new or existing home equity line. If you use this approach, you should only transfer debt if the interest rate on your home equity line is lower than that of your credit card. You should also focus on paying down the debt instead of carrying it on the home equity line. This strategy can improve your score because the scoring formula that FICO uses evaluates your handling of different types of debt.

Individualize your accounts after divorce: Since married couples share debt burdens, what one spouse does will affect the other’s score. Joint accounts should be paid down and closed or transferred into individual accounts. Then, you will have the challenge of rebuilding independent credit with new cards, loans, or a mortgage

Pay off debt as you go: Make extra payments throughout the month to prevent the appearance of debt accumulation over the course of a month. It will leave you without as much money in your bank account through the month but can help build and keep your credit score higher.

Become a joint credit holder on someone else’s account: If you know someone who has great payment history and a good credit score, tying into his or her account can actually help you improve your credit score. You need to be able to trust in whoever’s account you join, however, because his or her poor payments will affect you. Getting removed from a joint account may be difficult, as well.

Review your credit report: Make sure you contact credit reporting companies and get outdated or incorrect information removed from your history. Inaccuracies can take up to a month to correct, but is a short-term solution to boosting your score.

Don’t apply for too many credit cards at once: Inquiry information is reported to credit reporting agencies and will be listed on your report for two years. Multiple inquiries can significantly impact your credit score for up to a year. Mortgages and car loans are exceptions to this strategy. Multiple inquiries will be treated singularly and will not affect your credit score.

Talk with creditors: If you face a difficult financial situation, your credit may work with you to find a viable solution to help you pay off debt without defaulting. Not talking to your creditor and defaulting on a card may mean you will be contacted by a collections agency, and your credit score will certainly be impacted.

Keep your knowledge of your credit score up-to-date so that you know if you need to work on rebuilding or maintaining it. Contacting a credit specialist can also be beneficial in informing you about what is going on with your credit. At National Credit Advisors, we will provide you with a free credit case evaluation and help you build your credit with a number of proven tactics.

Here Is How To Raise Your Credit Credit Score From 480 To 700

You can raise your credit score from 480 to 700 by following a few steps listed below.

Your credit score is your financial gateway to getting the things you want in life. Your credit score is used for the following; when you buy a car, lease a car, rent an apartment, buy a home, college loans, buy the newest computers, electronics and it’s also used by insurance companies when you need insurance.

Credit scores range from 300 to 850 and any score below 500 is considered a higher risk to lenders. Trying to maintain a score above 700 will improve your chances of getting a loan for larger purchases such as a car or a house. With a higher score you can get better interest rates and terms on your loans.

Obtain a 3 to 1 Credit Report

Go to Creditreport.com to get a free copy of your credit report. You want the 3 to 1 so that you can see the complete report from all 3 credit report agencies. Check your report for any inaccuracies such as someone else using your credit or anything that shouldn’t be there. This could be identity theft and should be reported immediately.

Make sure that each of your creditors have accurately reported your information. If you find there are mistakes, draft a letter and mail it to the credit report agency along with any proof to back up your dispute. You want to get this inaccurate information off your credit report as soon as possible.

Consolidate Credit Cards

Transfer balances on higher interest rate cards to ones that have a lower interest rate. This will lower your credit score by getting rid of too much debt.

Inspect Your Finances

Pull all your finances together. Look for somewhere you can squeeze say $100.00 additional each month. Take this money and apply it to the credit card with the highest interest rate each month until you get it paid off. Then, take that money and pay off the next highest interest rate credit card, and so on.

Avoid the Top End Limit of Credit Cards

Being maxed out on a credit card can lower your credit rating. A good benchmark is only holding 30% of the max amount available on the card. If you have a credit card with a balance of $1000.00, keep the amount on that card around $350.00 to improve your credit score.

Pay Your Bills on Time

Be sure that you consistently pay all your bills on time. Paying your bills on time is the one of the main elements that the credit bureaus use in calculating your credit score. (35% of your score is based on payment history)

Pay more than the minimum due on each credit card, only paying the minimum due is a sign you could fall behind on your payments and you may be a high risk.

Close Un-Used Credit Cards

Simply destroying your cards doesn’t work. You need to call the credit card company and request that they close your account so that it no longer shows on your credit report. This will help increase your credit score.

Refrain from Requesting More Credit

Each inquiry is reported to the credit agencies and multiple inquiries can negatively impact your rating. If there are no inquiries for a 2 year period, lenders are more willing to extend credit, confident that you will not overextend yourself and default on your payments.

Using these helpful tips can help you to increase your credit over time.

The Importance of Having a Good Credit Score in 2016

An impressive credit history can benefit you in ways you have never imagined. Consider being able to access the following:

1. Higher credit card limits

Who wouldn’t want to have an increased borrowing capacity? Upon proving to creditors that you are a responsible holder of a credit card, your credit card limits will rise automatically. Even if the company doesn’t raise your credit limit, you have the option to make a request for the same. It is impossible for your credit company not to honor your application. It is, however, imperative to keep in mind that the ratio of your available credit to what you have used plays a significant role in the determination of your credit score. Besides, earning higher credit limits will add a few more points to your high score.

2. Landlords’ approvals

Nowadays, property owners use your credit score to determine if they will rent out their houses or apartments to you. The better your score, the more confidence they will have in letting you rent. This is mainly because; they tend to believe that you are more likely to pay on time. With good credit, getting the approval of landlords becomes much easier.

3. Reduced interest rates

Interest rates have witnessed a dramatic rise in recent years. This can largely be blamed on the harsh economic times being experienced by the whole world. However, with a high credit score, you have the opportunity to have your interest rates lowered whenever you take a car loan, a house loan or any other type of loan. With a history of timely payment of loans, lenders will consider you a safe bet to repay the loan. This is an excellent way of saving money. How? One may ask. Even a 1% decrease in interest for a 25-year mortgage can translate to tens of thousands of savings – over the lifetime of the loan.

4. Personal matters

Apparently, your luck for love goes up when you have an impressive credit score. It doesn’t come as a surprise that people are looking into FICO scores when vetting their potential love interests. The world population is becoming more independent and liberated. People aren’t jumping into relationships just for the sake of it. They are willing to stay single rather than invest in non-constructive relationships. They want to get married to partners with whom they can buy a home, cover travel expenses and even invest among many other things.

Poor credit scores are interpreted as a sign of irresponsibility and bad financial management skills. Working towards a high score puts you more at ease when discussing concrete future plans with your love interest. Nothing will make you feel more confident than knowing that you have a top-notch credit score.

Improve Your Credit Score With the Help of a Reliable Credit Repair Service Provider

An excellent credit record allows a customer to gain the ability to obtain a lucrative loan program to purchase building, car and other essential things. If you have a good credit score, then you can acquire a good loan program for your requirement. However, if you have inappropriate one, then it might create an obstacle when you plan to buy vehicle, house as well as other relevant things. If you are unable to acquire it, then it becomes difficult for you to acquire an appropriate loan along with affordable interest rates. In this type of scenario, it is quite natural that you should have developed an interest to obtain as well as to maintain this type of score.

However, there are circumstances when you are unable to secure it even though you have tried your level best to do so by all possible means. Indeed, you need to spend a lot of time and energy to repair your bad credit record. Here lies the importance of involvement of this type of service provider. They understand the basic rules and guidelines that are associated with this type of process and they should understand the ways to implement those particular rules to improve it as well as to allow you to save money in the best possible way. However, there is no formula to increase credit score instantly, but there are several instances where a proficient credit repair service provider can allow you to improve it to a great extent. This article will highlight on a few important responsibilities that are fulfilled by a proficient credit service provider.

The key function of this type of service provider is to remove mistakes from this type of report. These mistakes include the occurrence of errors at times of reporting the lenders as well as the occurrence of simple mistakes at the time of offering personal information to the lenders. If you think that there are multiple mistakes occurred in it, then it is advisable that you should get in touch with this type of provider to rectify your mistakes in the best possible way.

It is vital that you should verify every detail of your own credit report in the best possible way. For instance, if you have one negative item on this type of report due to the involvement of a lender who already left the industry, then there is possibility that the appropriate bureau would not get any sort of reply whenever they would call you to verify the details on the report. If such thing happens, it is advisable that you should immediately remove the detail of this type of lender from this type of report.

It is vital to remember that most of these service providers operate their business activities for the last three or four years. Therefore, it is expected that they possess relevant experience or expertise to be able to negotiate with the lenders in the best possible way. If you wish to improve it and if your lender wants to discuss this type of issue, it is advisable that you should take help of this type of service provider without any delay.